3 Best Artificial Intelligence Stocks to Buy in June

Core Viewpoint - Artificial intelligence (AI) stocks remain attractive investments despite the ongoing development phase of AI technology, with Nvidia, Taiwan Semiconductor Manufacturing, and Meta Platforms identified as top picks for long-term investment opportunities [1] Nvidia - Nvidia holds a dominant market share of approximately 90% in the graphics processing unit (GPU) industry, which is essential for training and running AI workloads [3] - The company reported a remarkable revenue growth of 69% year-over-year, reaching $44 billion in Q1, with projections of 50% growth in Q2, indicating strong demand for AI [4] - Nvidia's shares trade at 33 times forward earnings, aligning with other major tech stocks, but its growth potential is considered superior, making it a compelling buy [5] Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing Company (TSMC) benefits significantly from the demand for Nvidia's products, as it produces chips for Nvidia and other major tech companies [6] - Investing in TSMC is viewed as a bet on increased future AI spending rather than choosing a specific winner in the AI sector, with the stock trading at 22.9 times forward earnings, comparable to the broader market [7] - With anticipated growth and a relatively low starting price, TSMC is considered a strong AI stock to acquire [8] Meta Platforms - Meta Platforms, formerly known as Facebook, generates 98% of its revenue from advertising across its social media platforms [9] - The company is heavily investing in AI to enhance advertising effectiveness and reduce operating costs through AI agents [10] - Meta's ambitious projects include AI glasses aimed at real-world applications, with potential widespread use anticipated in the next five to ten years, while the stock currently reflects only its traditional advertising business [11] - Trading at 27 times forward earnings, Meta's stock price does not account for potential upside from its AI investments, making it a top AI pick [14]